2019-21746. Order Denying Export Privileges  

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    In the Matter of: Eldar Rezvanov, Inmate Number: 35027-016, Moshannon Valley Correctional Institution, 555 Geo Drive, Philipsburg, PA 16866.

    On July 24, 2018, in the U.S. District Court for the Eastern District of Virginia, Eldar Rezvanov (“Rezvanov”) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) (“AECA”). Rezvanov was convicted of violating Section 38 of the AECA by knowingly and willfully exporting, causing the export of, and attempting to export items designated as defense articles on the United States Munitions List from the United States to Russia without the required U.S. Department of State licenses. The items included, seven assembled firearms, ten firearm stocks, 130 fully assembled lower recievers, 133 firearm frames, 158 firearm barrels, 266 firearm slides, 453 functional firearm parts (including springs and firing pins), and 966 firearm magazines. Rezvanov was sentenced to forty-six (46) months in prison, three years of supervised release, and an assessment of $100. Rezvanov also was placed on the U.S. Department of State Debarred List.

    The Export Administration Regulations (“EAR” or “Regulations”) are administered and enforced by the U.S. Department of Commerce's Bureau of Industry and Security (“BIS”).[1] Start Printed Page 53407Section 766.25 of the Regulations provides, in pertinent part, that the “Director of [BIS's] Office of Exporter Services, in consultation with the Director of [BIS's] Office of Export Enforcement, may deny the export privileges of any person who has been convicted of a violation of . . . section 38 of the Arms Export Control Act (22 U.S.C. 2778).” 15 CFR 766.25(a). The denial of export privileges under this provision may be for a period of up to 10 years from the date of the conviction. 15 CFR 766.25(d).[2] In addition, pursuant to § 750.8 of the Regulations, BIS's Office of Exporter Services may revoke any BIS-issued licenses in which the person had an interest at the time of his/her conviction.[3]

    BIS has received notice of Rezvanov's conviction for violating Section 38 of the AECA, and pursuant to § 766.25 of the Regulations has provided notice and an opportunity for Rezvanov to make a written submission to BIS. BIS has not received a submission from Rezvanov.

    Based upon my review and consultations with BIS's Office of Export Enforcement, including its Director, and the facts available to BIS, I have decided to deny Rezvanov's export privileges under the Regulations for a period of 10 years from the date of Rezvanov's conviction. I have also decided to revoke any BIS-issued license in which Rezvanov had an interest at the time of his conviction.

    Accordingly, it is hereby Ordered:

    First, from the date of this Order until July 24, 2028, Eldar Rezvanov, with a last known address at: Inmate Number: 35027-016, Moshannon Valley Correctional Institution, 555 Geo Drive, Philipsburg, PA 16866, when acting for or on his behalf, his successors, assigns, employees, agents or representatives (“the Denied Person”), may not, directly or indirectly, participate in any way in any transaction involving any commodity, software or technology (hereinafter collectively referred to as “item”) exported or to be exported from the United States that is subject to the Regulations, including, but not limited to:

    A. Applying for, obtaining, or using any license, license exception, or export control document;

    B. Carrying on negotiations concerning, or ordering, buying, receiving, using, selling, delivering, storing, disposing of, forwarding, transporting, financing, or otherwise servicing in any way, any transaction involving any item exported or to be exported from the United States that is subject to the Regulations, or engaging in any other activity subject to the Regulations; or

    C. Benefitting in any way from any transaction involving any item exported or to be exported from the United States that is subject to the Regulations, or from any other activity subject to the Regulations.

    Second, no person may, directly or indirectly, do any of the following:

    A. Export or reexport to or on behalf of the Denied Person any item subject to the Regulations;

    B. Take any action that facilitates the acquisition or attempted acquisition by the Denied Person of the ownership, possession, or control of any item subject to the Regulations that has been or will be exported from the United States, including financing or other support activities related to a transaction whereby the Denied Person acquires or attempts to acquire such ownership, possession or control;

    C. Take any action to acquire from or to facilitate the acquisition or attempted acquisition from the Denied Person of any item subject to the Regulations that has been exported from the United States;

    D. Obtain from the Denied Person in the United States any item subject to the Regulations with knowledge or reason to know that the item will be, or is intended to be, exported from the United States; or

    E. Engage in any transaction to service any item subject to the Regulations that has been or will be exported from the United States and which is owned, possessed or controlled by the Denied Person, or service any item, of whatever origin, that is owned, possessed or controlled by the Denied Person if such service involves the use of any item subject to the Regulations that has been or will be exported from the United States. For purposes of this paragraph, servicing means installation, maintenance, repair, modification or testing.

    Third, after notice and opportunity for comment as provided in Section 766.23 of the Regulations, any other person, firm, corporation, or business organization related to Rezvanov by ownership, control, position of responsibility, affiliation, or other connection in the conduct of trade or business may also be made subject to the provisions of this Order in order to prevent evasion of this Order.

    Fourth, in accordance with Part 756 of the Regulations, Rezvanov may file an appeal of this Order with the Under Secretary of Commerce for Industry and Security. The appeal must be filed within 45 days from the date of this Order and must comply with the provisions of Part 756 of the Regulations.

    Fifth, a copy of this Order shall be delivered to Rezvanov and shall be published in the Federal Register.

    Sixth, this Order is effective immediately and shall remain in effect until July 24, 2028.

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    Issued this 30th day of September, 2019.

    Karen H. Nies-Vogel,

    Director, Office of Exporter Services.

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    Footnotes

    1.  The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730-774 (2019). The Regulations originally issued under the Export Administration Act of 1979, as amended, 50 U.S.C. 4601-4623 (Supp. III 2015) (“EAA”), which lapsed on August 21, 2001. The President, through Executive Order 13,222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which was extended by successive Presidential Notices, continued the Regulations in full force and effect under the International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. (2012) (“IEEPA”). On August 13, 2018, the President signed into law the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which includes the Export Control Reform Act of 2018, 50 U.S.C. 4801-4852 (“ECRA”). While Section 1766 of ECRA repeals the provisions of the EAA (except for three sections which are inapplicable here), Section 1768 of ECRA provides, in pertinent part, that all rules and regulations that were made or issued under the EAA, including as continued in effect pursuant to IEEPA, and were in effect as of ECRA's date of enactment (August 13, 2018), shall continue in effect according to their terms until modified, superseded, set aside, or revoked through action undertaken pursuant to the authority provided under ECRA.

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    2.  See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp. III 2015); Sections 1760(e) and 1768 of ECRA, 50 U.S.C. 4819 and 4826; and note 1, supra.

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    3.  See notes 1 and 2, supra.

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    [FR Doc. 2019-21746 Filed 10-4-19; 8:45 am]

    BILLING CODE 3510-33-P

Document Information

Published:
10/07/2019
Department:
Commerce Department
Agency:
Industry and Security Bureau
EntryType:
Notice
Document Number:
2019-21746
Pages:
53406-53407 (2 pages)
SectionNoes:
PDF File:
2019-21746.pdf